By Mabuyane Mabuza
The modern world is moving at a fast pace that can be overwhelming at times. Add to that are geopolitics playing out right before our eyes, and these affect everything from fuel prices to the cars we drive. But businesses that adapt to these shifts don’t just survive — they thrive. XploreZA joined the media at Volkswagen Group Africa’s annual Indaba in Kariega, Eastern Cape. The conference offered a postmortem of the company’s performance and future plans, covering everything from new models to motorsport and business ventures.
Let me just say, a lot is happening at plant Kariega.
Volkswagen Group Africa remains committed to South Africa and much of the
continent according to Managing Director and Chairperson Martina Biene. While the
brand has slipped from its position as the country’s second-best-selling carmaker, its leadership is confident of a comeback. However, regaining ground won’t be easy,
especially with the added challenge of reviving Audi’s local performance.
VWGA isn’t just keeping up with changes in the automotive world, it’s actively preparing for the future. From upgrading production lines to mapping out its
electrification plans and expanding into new markets, Volkswagen is positioning itself to stay ahead in a rapidly evolving industry. For example, a lot has changed since our last visit to VWGA in 2024. The plant is now reaping the benefits of its multi-million-rand solar installation, reducing its reliance on the grid. In addition, the company is harvesting rainwater to ease pressure on the region’s limited water supply.
While Europe is preparing for an all-electric future by 2035, Volkswagen recognises
that demand for internal combustion engines remains strong in developing markets.
That said, the company isn’t ignoring the shift, when the time comes, the plant will
adapt for electric production. For now, though, the Polo remains a priority.
As the EU shifts towards an all-electric future, Volkswagen Africa is looking beyond
Europe to keep the Polo alive. Africa is a key focus for VWGA, alongside growth
opportunities in Southeast Asia and Latin America. Beyond expanding its presence,
the company aims to localise production to better meet demand in markets where
the Polo remains popular.
Biene believes Africa still has strong potential for internal combustion vehicles.
Volkswagen’s Kariega plant, which has been exporting since 1992 and producing
Polos since 1996, set a new record in 2024 with 131,485 units shipped, surpassing
the previous high of 108,422 in 2019. As of July 2024, VWGA is the sole exporter of the Polo to European and Asia-Pacific markets, supplying 38 countries. Last year,
these exports made up 88% of all vehicles shipped through the Port of Port
Elizabeth.
